Argentina's Stable Dollar Isn't Enough Amid Mounting Economic Strains
Argentina's currency has stabilized under President Javier Milei, but economists say that alone is not resolving deeper strains in the economy. Sectors of the real economy continue to slump, while informal work, unemployment and debt delinquency are on the rise.
Argentina's exchange rate has remained relatively stable in recent months under President Javier Milei, a shift often cited as a sign of progress after years of currency turmoil. Yet economists say that stability alone is not enough to address deeper structural strains in the economy, as several sectors of the real economy continue to slump.
Indicators tracked by economists point to rising informal employment, meaning more workers are taking jobs outside the formal, regulated labor market. Unemployment has also been climbing, according to analysts monitoring labor-market data, even as headline inflation figures have shown improvement compared with previous years.
Debt delinquency is likewise on the rise, with more households and businesses reportedly falling behind on loan payments, analysts said. Economists caution that a stable currency does not by itself resolve these pressures, and that the durability of Argentina's economic stabilization will depend on how the government responds to these emerging weaknesses in the real economy.
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